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3 Aug 2010
School
Department
Course
Professor
ECO360Y1 t Economic Growth and Technical Change
Schumpeter (socialist)
MORGAN t ^]ξ‚šξ€‚o]uZξ€‚ξ‚ξ€ƒξ€‚ξ€ƒΓξ€žξ€‚lvξ€žξ‚ξ‚ξ€ƒ]vZ]ξ€žΓ€]vP(Β΅ooξ€ƒξ€žuo}Γ‡uξ€žvξ‚š_~}vξ€ƒΓξ€‚ξ‚Œξ€ƒξ€ξ€žξ‚šΓξ€žξ€žvZ¡]lh^V^ξ‚š}
ensure full employment, needs expenditure
- WWII
- 1953 t 1st period of weakness in the post war period, high levels of unemployment
o Korean war
- Capitalism will fail
- No roles for entrepreneurs; entrepreneurs will turn away from business, task of entrepreneur is
to INNOVATE (introduce an un-tried tech, open new source of supply, etc.)
- Technical process is increasing controlled by a team of trained specialist; drives entrepreneurs
away (like amoured knight in the Middle Ages t change in military production function = loss of
knights)
CAPITALISM/ENTREPRENEURS
- Initially we have small/medium businesses replaced by LARGE firms
- Increasingly Automated t less use for entrepreneurs
- Entrepreneur looses power and force as team of specialists make the decisions for the firm
- Even if all the firms were perfectly managed, the end result will be the same, entrepreneurs will
lose economic power; private property (primary shareholders) loses power because too many
SHs
- SHs used to make decisions with entrepreneur
- Large scale enterprise decreases amount of power given to both entrepreneurs and SHS
- ^tξ€žξ€ƒξ€š}v}ξ‚šξ€ƒlv}Γξ€ƒξ‚šZξ€žξ€ƒξ‚‰ξ‚Œξ€žξ€]ξ‚ξ€žξ€ƒΓξ€‚Γ‡ξ€ƒ]vÁZ]Z}]o]ΓŒξ€‚ξ‚š]}v]ξ‚ξ€ƒξ‚‰ξ‚Œξ€žξ‚ξ€žvξ‚šYΓξ€žξ€ƒξ€š}lv}Á]ξ‚šξ€ƒξ€žΓ†]ξ‚ξ‚šξ‚ξ€ƒt it may
}uξ€žξ€ƒ(ξ‚Œ}uξ€ƒξ€‚ξ€ƒξ‚Œξ€žΓ€}oΒ΅ξ‚š]}v~M_
- Transformation form capitalism to socialism (primary causes not entirely clear)
o More government intervention
- Rise of multinationalism (1950s)
- ^W/d>/^DEKd^hZs/sξ€œ_
- ^]uoΓ‡ξ€ƒξ€žξ€}v}u]ξ€ξ€ƒξ‚Γ‡ξ‚ξ‚šξ€žuÁZξ€žξ‚Œξ€žξ€ƒξ€žξ€}vξ€ƒξ€‚ξ€ξ‚š]Γ€]ξ‚šΓ‡ξ€ƒP}ξ€žξ‚ξ€ƒ}vξ€ƒξ€Γ‡ξ€ƒξ‚‰ξ‚Œ]Γ€ξ€‚ξ‚šξ€žξ€ƒ]vξ‚š]ξ€‚ξ‚š]Γ€ξ€žξ€ƒ(}ξ‚Œξ€ƒξ‚‰ξ‚Œ]Γ€ξ€‚ξ‚šξ€žξ€ƒ
ξ‚‰ξ‚Œ}ξ‚‰ξ€žξ‚Œξ‚šΓ‡_
- 1973 t CEOs predicted real wages would continue to go up until year 2000 t no one saw that
labour productivity falters
- Economic models did not adapt to changing roles of entrepreneurs
- The giant concerns of microtheorists is always one of rigid prices, restrictive output, and
extinquisher of competition (as compared to SCHUMPETER)
- I know of slow progress in regulation
- There are many forms of socialism
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